UK natural gas prices surge amid Middle East escalation

UK natural gas futures surged 26% to above 143 pence (about 1.90$) per therm on Tuesday, the highest since January 2023, after Qatar halted LNG output at its Ras Laffan complex following an Iranian drone strike, Trading Economics writes.

The shutdown of a facility responsible for roughly one-fifth of global LNG supply sent shockwaves through energy markets.

As noted, the UK is particularly exposed due to limited storage capacity and heavy reliance on imports.

Flows through the Strait of Hormuz had already slowed, and although most Qatari LNG goes to Asia, any prolonged outage is likely to intensify global competition for cargoes and lift prices in Europe.